tv Closing Bell With Maria Bartiromo CNBC June 18, 2012 4:00pm-5:00pm EDT
wednesday. stand by now for maria's exclusive interview with citi ceo vikram pandit as the "closing bell" continues now. i'll see you tomorrow. [ closing bell rings ] it is 4:00 on wall street. do you know where your money is? i'm maria bartiromo with the new york stock exchange. the bulls and bears in a tug of war on wall street. investors remaining cautious amid ongoing concerns about europe, despite a win by the pro-bailout party in greece yesterday. will it take more action to the federal reserve to finally bring conviction back to the market? top strategists weigh in coming up on the program. and don't miss my interview with citi ceo vikram pandit. the dow jones industrial average under selling pressure, down 24
points, volume once again on the light side. the nasdaq composite was strong, technology continues to be a hot spot for investors, up 22 1/2 points, up 3/4 of 1%. it's been a pretty good run for stocks since the beginning of june but dan mcmahon says there's zero conviction behind the rally. mr. mcmahon is here with us to make his case along with our own brian shactman. good to you have on program. thank you for joining us. let me kick it off with you, dan. you don't think this market has any catalyst on the horizon until those three issues sort themselves out. >> i think there's plenty of catalysts. you need europe to gain traction and gain footing. greece is a problem but spain
and italy are even bigger problems. you've got earnings season right around the corner, that's another catalyst. washington, d.c., obamacare. what we lack is something that's where you can invest on fundamentals because everything right now is too tough to handicap. investors have very, very little conviction and the trading volumes represent that. >> that's why we see the volume that we see, mark. how do you invest in an environment where you have volume that's deadly and volatility that's deadly. we really need action here to get investors involved. >> we continue to believe that leaning into large, high quality companies, primarily those domiciled here in the united states is the way to do that. we think in the event obviously that the recent resolution on some of these macro issues that, could lead to a pretty significant rally. one has to be long enough to be able to participate in that rally. that said, by staying with higher quality, we hope it will dampen the volatility in the event that the events leading to
potential solutions is still drawn out or in some cases inactivity or no solution is forthcoming and we do kppt a down draft in equity prices, you have built in protection. >> maria, there isn't a lot of investing going on, it's only trading. yesterday the perspective on greece was simple as this, a lot of negatives are still on the table. you talk about catalyst. why would you want to buy a difficult i dend yield if there's a 10% downside risk in the stock anyway? there's this paralysis. a lot of people save the fed won't even change it because they're going to telegraph whatever it is, maybe it's the jobs report and we're away from that. >> i thought that was a bold call from yann saying the fed was going to ease this week. if we were to get a suggestion of an easing on wednesday when we see the end of that two-day
meeting, do you think that's enough to let this market get some conviction going? >> every indication points they're going to extend operation twist. unfortunately how much of that is already priced in or built into the market? i think it's probably more disappointing if they absolutely do nothing or communicate that they're taking their eye off the ball, which i think is slim. >> that's priced in. you don't think that's going to be a catalyst. mark, let's save we get positive activity from the fed. what would you expect the supreme court ruling on the health care legislation? that's another catalyst? >> that's expected next week so i think the market would move on any kind of announcement from the federal reserve. equity prices could be pressured if there is inaction by the fed post their meeting at the conclusion on wednesday. any activity on their front and any ruling from the supreme
court would boost risk assets if only that more certainty is being put into the marketplace that today doesn't exist. >> you think the health care legislation will get voted down that, it is unconstitutional, do you think we get a rally in health care stocks? >> i think we do. in fact, even if we don't get the entire repeal of the health care legislation, even parts of it might provide some relief on that front to do two things -- once again, take away some of the pressure that's been placed solely on an industry sector that's been under the cloud of this health care reform and provide a little more visibility to a big piece of legislation that continues to weigh on the markets. >> you have to factor in what's the impact on the political side of it? it will make more investors want to wait until after the
election. it's going to be a fascinating decision. i wonder what the impact outside of the health care sector would be if it's struck down. >> what do you guys think? any thoughts on brian's question? >> i think real quickly -- go ahead, dan. >> i think anything that lends itself to certainty at least allows people to evaluate risk and make investments. any resolution is better than none whatsoever, which is where we are currently. >> go ahead, mark. >> most definitely. as it relates to ceos, one of the things they reported was being played close to the vest was the lack of visibility of government interference. this would be one element removed on the government interference issues, might spur ceos to invest and/or hire again. >> thank you very much. we'll be handicap being the supreme court decision here on "closing bell" as we are expecting it imminent.
bob pisani? >> the guys everybody thought would win in greece did win and the rally occurred on friday. that's a simple explanation of what happened today. volume on the light side, very narrow trading range, about 80 points for the dow. investors are definitely expecting some hints of fed easing on wednesday. i think we'd be disappointed if we didn't get it. ms. merkel did reject the third bailout for greece but there are indications she's going to soften on that. energies and financials were on the lagard side and have been on the lagard side. all the builders closed right near their highs. apple finally participated. last week they didn't have anything to do with the stock market. today they had a great move to the up side. steel stocks down again. now a.k. steel said their earnings would be below expectations. >> we have breaking news right
now. i want to get to kate kelly at headquarter. >> chesapeake energy, the embattled company shaking up almost its entire board right now has sorted out who at least one new director will be. instead of carl icahn itself, it's a senior managing director who attended the company's annual meeting a couple of weeks ago and made a speech praising ceo aubrey mcclendon for being a great man and great entrepreneur but saying even great purrs need oversight. he's already seen up side and resulted in changes in corporate governan governance. three seats will be largely at the behest of southeastern asset management. we can expect further details no later than friday of this week, maria. >> all right, kate. thanks so much. we're just getting started on this special edition of the
"closing bell." when will citi deliver that dividend to investors? >> at this point it's a decision we need to make by the end of the year when we file but certainly not sooner than 2013. >> maria's exclusive interview with ceo vikram pandit is next. >> and is microsoft set to unveil a tablet? will it be a legitimate competitor to the ipad or suffer the same fate as so many others before it? i went to a small high school.
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welcome back. shares of citi finishing low today. on the bright side they celebrate their 200th birthday since the company was formed. ceo vikram pandit ringing the opening bell today. he tells me they have been imagining their exposure to european banks and the firm it well capitalized with $420 billion on their balance sheet. he tells me the restructuring is going according to plan. in a cnbc exclusive, i began by getting his reaction to the elections in greece. >> you've got to start by saying
the greek elections are positive for keeping the euro together. there are a lot of challenges ahead still. and for all of us as banks, we've got to be prepared for every and any eventuality that may occur. that's what we've been doing for the last 18 months. we've been doing that by, one, limiting our exposure to some of the sovereigns in europe, secondly, managing exposure to some of the financial institutions but most importantly we've been looking at every country on its own. it's like each tub on its bottom. when you go to greece if you've made loans, you want to make sure you have local funding local deposits to cover that, asset liability matching. that reduces your risk. that's what we've been doing for the last 18 months. one thing we also have been doing is we've noticed that the european banks found it tougher to help some of the multi-nationals that are headquartered in europe and they need dollar-based financing,
providing them dollar based funding they need to run their businesses around the world and we'll continue to do that. >> there are opportunities in europe now given low valuations? i recognize money is tight. do you see valuations having dropped so low as a result of the banking sector here? >> you can look at the valuations here and around the world and clearly look at the numbers. there are some compelling values i'm sure around the world. the most important thing going on is a question in the market's mind in terms of the future of the euro. thr europe as a financial system has almost $40 trillion of assets and that's compared to $14 trillion in the u.s. banking system. it's almost two and a half times the u.s. system. that's big. they're going to have to delever, they're going to have to shrink and a lot of the activities going on in europe is
banks in europe trying to figure out what they should be doing going forward. it's tougher for them to be in the dollar financing business and they're shrinking back and that helps us. >> you said you've been doing a lot of repositions over the last 18 months. you've been shedding assets. are you done with the head count cuts or are there more cuts coming to head count? >> third, fourth quarter last year and earlier this year we decided that we had to restructure some of our businesses. and this, by the way, was part of a long restructuring project we've been on overs last three years. we've done a lot of that. we cut back in some of our trading businesses, capital market businesses but where we are today we think is sized correctly for this environment. having said that, what we always have to do is keep an eye out for what capacity we need, how we need to serve our clients. it's going to be an ongoing process. >> in terms of the moody's ratings down grade, we're all
expecting moody's to down grade the ratings on u.s. banks. how do you prepare for that? are you expecting a two notch, three-notch down grade? tell me what you're expecting and how it affects the bank. >> we're ready for any eventuality that comes out of here. take whatever the worst case they have in mind, we're ready for that. frankly one of the things that's changed and i think it's for the better is money managers and people who own instruments are doing more of their own work. some of that was mandated by dodd-frank, some of that comes out of the eu directive but you don't have the same direct mechanical linkage from moody's advice to a fiduciary action. i think that's a good thing. we're seeing more and more of that happen. it's not something that's happening uniformly but we don't expect the impact to be material on us. >> i guess we're all anticipating it but it does make your financing of dealt more expensive. >> again, when we look at the market crisis and where the debt is trading and up look at the
funding that we've been doing, you're right. a lot of this is completely anticipated. we think it's in the markets. more importantly as a bank, a big part of our book is funded by deposits around the world. we have over $900 billion of deposits as a company and that really finances a lot of the activities that we have in terms of left-handing, which is where you need long-term financing. >> which is the argument to keep the large banks in tact, whereas you could have one area of the bank that is riskier but you have got that very strong fortress deposit base to actually offset anything. but let me ask you about your comfort in your derivatives portfolio relative to jpmorgan, for example, given what we've seen at jpmorgan with this huge trading loss. >> so i don't know the facts on jpmorgan. i can, again, talk to you about what we're doing. and it really revolves around our liquidity portfolio. we have about $420 billion of
liquidity today on our balance sheet. it's very conservatively managed. it's almost all in cash and government securities and more importantly basel is going to come out with liquidity rules. they haven't finalized them yet but we're operating as if some of those rules are already in place and we actually have more liquidity than the basel rule will require us to do. so we've taken a very strong conservative approach to our liquidity collateraliz collateralized, we have tight risk limits and we're doing them for accommodations for our clients. >> are you compliant to basel iii today or are you moving toward that? >> today we're at 7.2% on tier one on basel iii by the end of the year we should be over 8%. all of us are waiting to see
exactly what the g-sifi charges are going to be. the minimum number is 7. having said that, we know we're going to have to carry a lot more capital. but those requirements are not in place by the end of 2018. we'll there been far, far ahead of that. but the most important thing for me today is when you look at basel i, which is today the operative capital requirement, we're at 12.5% and we have over $400 billion in liquidity. financial strength, balance sheet, that's not the issue. i think we're all focused on what's going to happen to the economy, how is it going to grow, where can we help our clients. that's where the growth is going to come from. >> in terms of complying with basel iii in the next couple of years, 2018, does that come from shedding assets? how do you raise more capital to get will? >> well, first of all, we've got earnings. by the end of the year we're over 8%. let's save they require 9, 9.5%
earnings should get us there. not only that we've done a great job of reducing citi holdings, which used to be 40% of our assets with a lot of capital tied up there. it's now down to 10%. that continues to shed as well. the combination of citi holdings coming down over time and the combination of our earnings profile and earnings capabilities should comfortably get us there a lot sooner than 2018. >> we spoke to one of your leading investors, prince alwalid. listen to this. >> are you expecting a dividend in 2012? >> vikram said we expect to return shareholders some of the capital, which means -- yes, i expect dividends 2012. >> if you don't get a dividend in 2012, are you going to be an active investors? >> i'll call vikram and tell him give me dividend. >> will he get his dividend?
>> we refiled our submission. we decided to not ask of return of capital this year. when you look at the timing, filing now when we hear back, 2012 is really gone. we're focused on 2013. by that time our tier within common in basel iii is over 8% and we think we're going to be in position to work with the fed to figure out how to return capital to our shareshareholder. >> so the dividend really is a 2013 story? >> it's a decision we need to make by the end of the year when we file but not sooner than 2013. >> what happened with all of that? when jpmorgan came out and told everybody we're compliant with the feds and the stress test, we're raising our stress test and you failed the stress test. everybody wondered did the fed give you the poor end of the stick? what went on there? >> well, i think first thing i would say is that the fed did approve certainly capital actions, redeeming of securities
and certain other things that we had in place but in terms of buying back stock or paying out a dividend, the fed wanted us to resubmit and without that action our stress tests results were basically on top of a lot of our peers. i think the most important thing to us is to make sure we continue to have that dialogue with our regulators, continue to make sure that we keep building our capital strength, keep earning the kind of money that we've been earning in our core businesses. because ultimately we and they and everybody else wants to make sure that we're ready for any eventuality that comes about. most importantly we're now focused on 2013. i think 2013 is when we'll file our c-car and look forward to that time and work with them. >> from an investment standpoint, if you want to make a wager on jpmorgan, the wage ser jamie dimon is going to lead the company through the regulatory hurdles. if you want to make a bet on
citi, the wager is you will lead citi outside the united states, asia, the emerging market customers. yet these areas are slowing. what can you tell us about the emerging markets today? >> they're still growing. they're growing a little slower than they were a few quarters back. some of that is natural. some of these economies have grown at a very fast clip for a long time, countries like china and others are having an impact off the european uncertainty on them as well. having said that, when you go into these countries and you look at the basics, the middle class is still rising, the consumers are getting stronger, there is a substantial amount of growth. they've stepped back a little bit in terms of absolute growth but the secular growth is there and still strong. for us we're doing a couple of things. one is that we're backing the emerging market consumer as a bank and we're banking the new multi-nationals coming out of emerging markets and connecting
the developed world to the emerging markets as well. when you pull pt all of those ts together, we're focused on globalization, on the rise in emerging markets and focused on the rise in global trade. all those three things are very strong. frankly, there's not another bank that can do that as well as we can for our clients. >> you're here to celebrate your 200 years and yet you and the company seem to have been a bit in limbo. you get criticized from the press for not moving fast enough, regulators announcing changes at a snail's pace, the fed holding interest rates at low levels manipulating the long and and you've got an economy globally that certainly is uncertain. how do you take this bank to the next levels in the coming years? >> you've got to start by admitting the crisis the u.s. went through and some of the things we're seeing around the world are really once in a lifetime, once in a generation, maybe longer than that kind of
event pchs these have been substantial events. the other side of that is we have a much stronger financial system in the u.s., stronger capital, strong are liquidity, recovering resolution plans that make these banks stronger as well. so i come into this third century as a bank with citi and our 260,000 people with one of the strongest balance sheets ever. and we come at it with a very clear strategy, focused around the basics of banks, around emerging markets, growth in globalization, connecting the world and as importantly we're going to be the digital bank going forward. and you know what that means? that means banking anywhere, anyhow you want and we look at all those things at a very strong path for leading this company into the third century. >> you think the volcker rule takes effect this year? >> i don't know. i know there's a lot of work going on. it is a rule that requires a lot of thinking in terms of houw yo
define market making versus proprietary trading. we were supportive of the principle that banks should not be speculating with their capital. having said, that the details may take a little built of time. >> well, you heard him, citi's man at the helm telling me europe's fiscal co woes are manageable and citi's financials are in good shape. and is microsoft too late to the game? the technology giant is expected to unveil its new windows 8 tablet but more than two years after apple came out with the ipad. and you're looking live outside the courtroom in washington, d.c. where we may be moments away from the verdict in the perjury case against former baseball pitching ace roger clemens. we' we'll have the verdict as soon as it is crossing the wires. back in a moment.
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>> are you done with the head count cuts or are there more cuts coming to head count? >> third, fourth quarter last year and earlier this year we decided that we had to restructure some of our businesses. and this, by the way, was part of a large restructuring project we'd been on for the last three years. we've done a lot of that. we cut back in some of our trading businesses, some of our capital markets businesses but where we are today we think is sized correctly for this environment. having said that, what we always have to do is keep an eye out for what capacity we need, how we need to serve our clients and it's going to be an ongoing process. >> you just heard from vikram pandit moments ago. we get reaction from our analysts watching the interview. gentlemen, thank you so much for joining us. what's your take on that interview? >> well, i think that, you know, he hit a lot of the high points
celebrating his 200th anniversary. >> it sounds like you didn't learn anything and he didn't hit on any of the issues of the day with that answer. >> well, you know, i think really the -- he's trying to manage the company in a period where his numbers are reasonably good and then there's a lot of macro uncertainty. >> right. and you still have an outperform rating on this stock. >> stock's trading at a little over half of tangible book. we basically agree with the premise he should be able to navigate through the european situation. the issue around slowing growth in emerge markets, they're still growing faster than the u.s. and he got good positions in a number of those countries. >> matt, what would you do after seeing that interview in terms of an investment around citi? >> i still would not own it. i respect pandit. he has significant economic head winds in front of him but i think the macro challenges are
too difficult for investors and i recommend caution, not being aggressive and buying the name at this time. >> do you think he explained that well? he did say the company is financially sound and that they are going to be compliant with basel iii and yet you're still quite cautious on this company. so what are we missing here? what did you need to hear from vikram pandit that you didn't? >> i think of him almost like a baseball manager down nine runs in the bottom of the ninth talking about we're going to get them next year. what struck me was your question about capital and dividend. he pointed out here has nearly $500 billion on his books now. what makes you think he's going to have it next year with all the economic head winds from front of him, his intrading revenues are anemic, revenues year over year are down 1.6%, i don't see the macro events any time soon. so i can't really look at his
analysis except to say, hey, i hope you're right but i don't really give it credence. >> and i think it was really telling when i asked him about the dividend and he said, well, it's at least 2013. i said is it a 2013 affair? he said it's at least 2013, we'll maybe the decision at the end of 2012. he's extremely iffy about paying money back to shareholders. >> if you want to look at financials and dividends, i'd look at the canadian banks. i think there's other opportunities not within the money centered banks. i recommend extreme caution in these areas. i still think europe is a mess, regardless of what happened with the election recently. >> gentlemen, thank you very much for weighing if on what we learned from vikram pandit. >> up next, will microsoft's tablet drive shares higher? the stock is up 14% year to date. and teaching children the value
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welcome back. the rumors are out about a microsoft tablet. they have been swirling. here's what we do know ahead of tonight's 6:30 p.m. announcement about the company. whatever it is, it won't involve barnes & noble. there was speculation the two would co-produce a new tablet or e-reader. would it be a gang changer because it would possibly integrate with x-box? in either case, they're late to the market. gentlemen, it's great to see you. brian, you say microsoft is too late to the party on this one is this. >> yeah. i think when you look at what apple has done, they really viewed this world as a post-pc world. this was years ago. and i look at microsoft and they look at everything as a pc. they didn't believe in the
tablet and here we are a couple years later and they're potentially coming out with one. so apple has sold 67 million ipads. they have about over 60% market share and i think they have the best legal system and the consumers will continue to flock to the ipad. >> what do you think about microsoft's new tablet? >> we'll hear details tonight but i think what they'll be competing with is more of the android device. i think there's a place for microsoft in the enterprise. i don't think consumers will necessarily flock to a new microsoft tablet. but i think in the enterprise it could be interesting. >> what about you? you say this could be a big success for microsoft. >> i agree with brian in terms of the enterprise but this is make or break for microsoft. they are watching the pc market, which they have dominated with windows for the last 20 or 30
years ehave been ravaporate in their eyes. they cannot stick a new operating system, their new windows system coming out and will be embedded in this tablet, they can't put this out there and compete with an apple operating system and android. they have to have a piece of hardware and the tablet is it. they will launch and dominate the enterprise market and they will do what apple did with very mind bending functionality in terms of the consumer product by incorporating incorporating some of the fantastic technology in the x-box in the consumer tablet. it's make or break for microsoft. >> i would agree with that. what really strikes me about this whole story, ahead of the new microsoft launch that's coming out, not necessarily the tablet but the windows 8, which is expected to be a big improvement, dan niles has been on the program from alpha one and he has said the windows 8
launch may create a stall for the pc business ahead of the launch because why would you go out and buy a new pc, a new device if you know you're going to be able to do a lot more, have much more accessibility when windows 8 comes out after? so you want to wait before buying new technology. so is there going to be a pc stall ahead of windows 8, the launch? >> that's inevitable but it's not just a pc stall because of the launch of windows 8-rt. it's a pc stall because the tablet and mobile devices are taking over from the desktop pc. the pc is history right now, maria. >> right. i'm sorry, go ahead. >> the tablet is one of the best sales tools that's ever been invented and it will have immediate application throughout the enterprise market. it's also going to have much greater security than the apple operating system offers and on top of that, it's got functionality. it has flash and video is the
dominant feature now in mobile and you don't get flash on apple. >> brian you acknowledge windows 8 is a big improvement, flight. >> i think it's a big improvement. we just got back from the compu tech show in taipei. it's definitely an upgrade, it's an improvement. >> gentlemen, we want to show a live shot of the courtroom for the roger clemens trial. we are waiting on the verdict here. as can you see, the players are walking out. they're walking right now into the courtroom. we'll have details in terms of how this verdict went, where this verdict went as soon as we know. we're going to know momentarily.
the verdict has been reached in the roger clemens perjury trial and we are waiting for the actual decision here. so we are talking about microsoft while we awaiting roger clemens perjury trial results there. in terms of investing in these companies, brian, is it going to be a game changer, the tablet of microsoft? it sounds to me like you don't think so. would you want to stay away from microsoft stock? >> i don't think it's going to be a game changer. this is a good year for microsoft because new products are coming out. we have an 11.11 price target n apple. there's plenty of up side on apple. buy the ipad, stick with apple. >> porter? >> i can't argue with brian about apple. but the tablet market is just at the beginning. 60-odd million units apple has sold is just the beginning of what the tablet is going to produce over the next several years. microsoft is clearly a
significant challenger and will carve out a decent, big market share starting with the enterprise market. i think microsoft is a great investment right now. >> we'll leave it there. gentlemen, thank you very much. we'll watch this story certainly with great interest. we'll see you soon. porter, brian, thank you. talk about tough love, more millionaire baby boomers do not want to leave their fortunes to their children. we'll talk about why and where that money is going instead. >> and three of wall street's top stock pros give us their takes on what will move your money tomorrow. stay with us. back in a moment.
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welcome back. warren buffett is leaving the vast majority of his wealth to charity, not his children. more and more wealthy baby boomers are apparently follow his lead when it come to inheritan inheritance. robert? >> one of the big questions for today's wealthy is how much money to leave their kids. a new survey finds many millionaires don't plan to leave their children much at only. only half of today's millionaire baby boomers believe it's important to leave wealth to their kids. a third of them would rather leave that money to charity. a third of them say they don't believe the kids are ready and a third are confident that their children would be ready to deal
emotionally and financially to deal with that wealth. this is evidence that parents and kids need to do more planning and educating and have more open conversations and do more estate planning. fine. maybe denying kids such a large inheritance isn't such a bad thing. a majority of today's millionaires did not inherit their wealth. they made it themselves, they know success is due to hard work and education and being allowed to fail. they want the same thing for their kids, which is understandable. most wealthy parents would prefer to raise the next peter buffett rather than the next paris hilton. >> we're going to break away to washington because we have the roger clemens verdict. we'll come back to this. the verdict is out on the roger clemens trial. over to you.
>> the verdict is not guilty on all six charges according to nbc news. a federal jury has found roger clemens, the baseball great, seven-time cy young award winner not guilty on all of the charges he faced of lying to congress. he was specifically facing counts of making false statements, two counts of of perjury and a count of obstruction of congress for telling a house committee in february of 2008 that he had not used performance-enhancing drugs. we now learned just within the past couple of minutes that the jury has found clemens not guilty. >> wow, not on all counts. i think that's a surprise for some people watching this trial. thank you so much. we'll see you soon. >> what will move your money? we'll get to that next. and we'll get information on housing and put you on the inside track. join us for closing bell tomorrow. i'll have an interview with the head of sanofi. find out which biotechs are setting the tone for the industry and where sanofi is
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>> >> stephanie, we begin with you. you have got 30 seconds on the clock. what do you watch for tomorrow? >> federal express reports before the open. we get a global macro update. >> if the stock shows in the news, a 23% discount. >> and i guess it tells us a lot about the economy. >> we're going to look at the
g-20 meeting and anything that comes out of there. and lastly we will watch the bond market going into the wednesday. we will be looking to see how the bond market performs ahead of that and housing numbers early in the morning. >> housing numbers, thank you very much. chad you're up. what do you watch for tomorrow? what's the most important? >> sorry. i don't usually go by chad. three different market areas. any more rhetoric from china saying it's your problem this time i see it as a negative in the market. if we get a continued balance, i think it will push our markets higher. i like to call them submerging markets. greece is a warm-up act. spain is the main act. any price moves above 600 buy sis points really troublesome for u.s. markets.
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this is the pursuit of perfection. >> and finally my observation on what the real outcome was. you really didn't solve anything yet and there were no hard and fast measures that the greeks must adhere to such as actually collecting taxes. but what the results did do is buy time. the more time you buy the more you can help the banks prepare for the next inevitable. with nuch time, bear sterns and
lehman might have survived, too. this election gives greece, spain and italy more time as the global banks strengthen their capital positions. now, spain will come into focus for sure. ten year yields hitting a new euro zone high. nothing in spain is being done to stop speculation of a full-fledged bail out there. all of this driving up the spread of german tenure yields. for the rest of the world to absorb those shocks. >> finally today is facebook's one-month anniversary as a public company and we want to know if you think the stock can get back to the ipo price by the end of the year. thanks for tweeting into us.
no chance facebook ever gets there. skbrus as soon as the rest of the orders gets executed. >> we will see the truth. thanks everybody for tweeting in. >> let's get a quick recap of the day. the dow jones industrial average getting back 25 points today. the victory in greece wasover shadowed. hitting the year row high. the s&p 500 good enough to set a three day winning streak. finishing at the best level in over a month.